I chose not to let the casino deduct taxes (at 30%) because the IRS guidelines say that the IRS deducts 25%. I need to know if the amt I won will be considered general income so that my deductions will reduce the final amount I owe.
2007-11-10 04:25:16 · 11 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Gambling winnings are taxable income... and you can only deduct gambling losses up to the amount won. The amount withheld from your winnings is really for your benefit since you'll be paying the tax on it at the end of the year anyway.
2007-11-14 03:54:22 · answer #1 · answered by rob b 3 · 0⤊ 0⤋
Yes, your winnings are considered income for tax purposes.
As for the 30% the casino was going to deduct for taxes vs. the 25% the IRS requires to be deducted...could it have been state taxes? Not all states require that gambling winnings for state taxes be withheld, but some do.
2007-11-10 14:24:51 · answer #2 · answered by sarah314 6 · 0⤊ 0⤋
Your gambling winnings are added to your other income before any deductions are taken. So if you have enough adjustments, itemized deductions or exemptions to reduce or eliminate the gambling income, you will reduce what you owe.
You can also see if you have gambling losses, which are itemized on Schedule A as a deduction. Be sure you have good documentation that you actually lost, because this situation is closely scrutinized.
2007-11-10 13:21:45 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
Yes the amount will be considered taxable income. I'm not sure what you are asking about the deductions reducing the final amount you owe.
2007-11-10 05:12:03 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
It is taxable income but you can deduct your losses up to the amount you won. You need to itemize deductions to deduct the losses. You can get a printout from the casino if you use one of their tracking cards.
2007-11-10 04:35:57 · answer #5 · answered by Anonymous · 2⤊ 0⤋
You should have let the casino take it out.
That would be listed as additional income. I won 2000 kept it, and my account said not to worry about it. Wrong! now now have a 600 dollar bill to pay. But you can also get a statement from the casino showing how much you have lost in the year.
2007-11-10 04:30:11 · answer #6 · answered by spiritwalker 6 · 0⤊ 0⤋
Yes, it is ordinary income. You can also deduct the amount you loose (up to the amount you won).
Casino's will give you a win loss report if you are using a player card.
2007-11-10 04:29:05 · answer #7 · answered by mstrobert 5 · 2⤊ 0⤋
Income tax; a more flatter,but somehow more progressive one. Since it's poorer volk like me whom have to use the most of whatever money I make from work just to buy the necessaries of life anyways. Also because sales taxes tend to take away more percentage of income from the poorer members of our society than the super-rich idlers whom just live off their investments made by their ancestors 5 generations ago. Not everyone is smart enough to go to college U know!
2016-04-03 05:46:22 · answer #8 · answered by Anonymous · 0⤊ 0⤋
You add your gambling winnings on Line 21 on the 1040 form.
2007-11-12 00:28:38 · answer #9 · answered by Gary 5 · 0⤊ 0⤋
You can only deduct your losses if you itemize your deductions. If you take standard deduction, all your winnings are taxable.
2007-11-10 04:47:18 · answer #10 · answered by Anonymous · 1⤊ 0⤋